China Turning to Bitcoin Could Collapse The Dollar – The Housing Crash Begins Economic Collapse In America 2017- 2018
Amber William
MyDailyInformer.com
March 13, 2017
The biggest bubble ever worth over $552 Trillion is going to burst any moment. There is a pattern around every US Election where the economy tanks. This is probably the most informative video you will ever see on the US and Global Economy.
Bipartisan anti-China hysteria is picking up on news the Asian giant’s holdings of U.S. Treasury securities increased by $12.2 billion to a record $1.32 trillion and that its foreign exchange holdings now stand at $3.8 trillion. Partial equilibrium analysis proposes that China will dump all of these Treasuries at some point and crash the U.S. dollar, riding disaster to international supremacy. But until the renminbi, becomes an internationalized reserve currency, there is no way China could unload U.S. debt without it ruining its own economy.
“If China does not buy the next Treasury bill… someone else will buy it with dollars, because it can`t be purchased with anything else but dollars. If China sells a T-bill out of its portfolio… it can only sell it for dollars. What does it do with the non-interest-bearing cash it acquires? It can buy goods or services or real property available from the U.S., available only for dollars. If China prefers none of these, its remaining option is to trade them for yen or euros, using that cash to buy stuff for sale in yen or euros. But now, someone or some institution that gave up the yen or euros now has those dollars, and where do they go? They can buy stuff for sale in dollars, or they can buy those interest-bearing T-bills that were just sold by the Chinese. Hmmm.”
Jude explained a chain reaction whereby the Federal Reserve in the course of targeting its domestic monetary policy (the federal funds rate then; broader quantitative easing now) could nullify any effect of China buying or selling of U.S. securities, as only it (the Fed) had an absolute monopoly on the creation or destruction of dollars.
The Rest…HERE
